https://www.taxtmi.com/caselaws?id=760737 CESTAT New Delhi allowed the appeal, setting aside the demand for CENVAT credit reversal with interest and penalty. The tribunal held that Rule 3(5B) of Cenvat Credit Rules applies only when inputs are written off fully or partially, not when their value is merely written down per accounting principles. Since the appellant only reduced inventory values in books while materials remained usable in the factory, the rule was wrongly invoked. The tribunal found no evidence of tax evasion and held the show cause notice was time-barred, as the appellant's accounting provision was normal practice and materials were still being used in manufacturing. en-us Thu, 24 Oct 2024 00:00:00 +0530 Fri, 25 Oct 2024 10:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760737 CESTAT New Delhi allowed the appeal, setting aside the demand for CENVAT credit reversal with interest and penalty. The tribunal held that Rule 3(5B) of Cenvat Credit Rules applies only when inputs are written off fully or partially, not when their value is merely written down per accounting principles. Since the appellant only reduced inventory values in books while materials remained usable in the factory, the rule was wrongly invoked. The tribunal found no evidence of tax evasion and held the show cause notice was time-barred, as the appellant's accounting provision was normal practice and materials were still being used in manufacturing. Case-Laws Central Excise Thu, 24 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760737